DislikedAlthough the PPI for Germany was slightly negative, that doesn't mean that the ECB will cut rates, 2007 has been a great year for the EU-Zone and inflation rose to 3,1 % (The ECB's goal is to keep it not higher than 2 %). There was a little pullback of the GDP for the last 2 quarters, but it remained stable over 2,5 % . Unemployment has been dropping since early 2005. And for the first time in history the EUR is going to have higher interest rates than the USD, taking the stability of the EUR into consideration, the higher rates will bring enough bulls to boost it far more than 1.50. That's my opinion.Ignored
The inflation is not only caused by productivity, but also by rising energy and food costs. Plus, in these uncertain times, the EUR having a higher interest rate than the USD makes it a bit of a liability... just some thoughts.
rudenstein